Autoregressive & Moving Average Models – Practice Quiz

Study autoregressive and moving-average dependence using explicit innovation assumptions and original examples. Calculate AR(1) means, variances, ACFs and forecasts; derive MA(1) covariance and invertibility; contrast stationary processes with random walks and interpret ADF-test evidence carefully. Prerequisites: stationarity, covariance, geometric series and hypothesis testing. Both question types include worked calculations and misconception-focused explanations.

Reading: Statistical reference 1; Statistical reference 2.